In the state tax world, the beginning of the year means new legislation goes into effect. Are you curious about which laws changed at the beginning of the month? Keep reading for eight states with new and updated sales tax laws you won’t want to miss.
Georgia: 529 Plan State Tax Update
For Georgia residents using a 529 Plan to save for college expenses, state tax deductions will double to be:
- $4,000 per child for single taxpayers
- $8,000 per year for those filing jointly with a spouse
This deduction will be available beginning with the 2020 tax year.
This is a continuation of the State Sales and Use Tax Exemption series from contributor and organizer Aaron Giles.
Kansas State Sales And Use Tax Exemptions
The state of Kansas levies a 6.5% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes up to 4%. The range of total sales tax rates within the state of Kansas is between 6.5% and 10.5%.
Use tax is also collected on the consumption, use or storage of goods in Kansas if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 25th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Kansas on or before February 25th.
One Louisiana sales tax exemption for medical purchases made by hospitals and health care facilities provides an opportunity for both Louisiana sales and use tax savings at the state tax rate of 5%. This Louisiana sales tax exemption applies to medical devices that are required to be issued under a physician’s prescription and are used personally and exclusively by a single patient.
As I was attempting to check one of our members Kathryn Morgan on the flooding in Bossier City, Louisiana, I was stunned by this video. Although Kathryn has yet to get back to me, I now understand why.
I met Kathryn when she had just come out of the flood in 2012 and we sent her a complimentary membership to help her during this time. She is outstanding and a super smart tax advisor. Looks like everyone will need a lot more help than a complimentary membership as the devastation from the flood in Louisiana is stunning. Read More
Each year, many states announce amnesty programs in an effort to incentivize taxpayers to pay state tax. Most programs, in one form or another, offer partial or full interest and penalty abatement if taxpayers pay back taxes owed. While the programs seem like a win for states in theory, as a state and local tax attorney, I can promise that such programs lead to problems. Auditors in the various states are told to close down improperly completed audits in an effort to get taxpayers in the amnesty program. This, in turn, leads to poorly conducted audits that must be protested and litigated. In short, state and local tax professionals in those states should be licking their chops for the bombardment of work that will likely ensue.
The most recent states to implement a version of an amnesty program are Arkansas, Connecticut, and Louisiana.
Arkansas’ amnesty program applies to franchise taxes and runs from September 1st through December 31st, 2013. In order to participate, taxpayers must submit all reports and forms and pay the computed tax to the state. If a taxpayer meets the requirement of the deal, then Arkansas will waive all interest and penalties for delinquent taxpayers.
Similarly, in Louisiana, a Tax Amnesty program went into effect on September 23rd, 2013. The Louisiana amnesty program is broader than Louisiana in that it covers most state and local taxes. Taxpayers only have until Read More